The airline industry faces significant challenges, including labor shortages and supply chain disruptions, which have intensified the need for operational efficiency and enhanced customer experiences. AI technology offers a solution by enabling airlines to integrate commercial and operational activities, leading to personalized customer journeys and smarter operations. The industry has seen a rise in AI maturity, yet many airlines still lag behind in fully adopting AI capabilities. To become AI-first, airlines should follow a three-phase framework: deploy AI in daily operations, reshape workflows for better economics and passenger experiences, and invent innovative business models. Successful examples include KLM's AI platform for operations control and personalized retailing initiatives. Executives are advised to manage the transition strategically, focusing on high-impact AI use cases while fostering a culture of innovation.